Contract Farming Resource Centre

Contract Farming in India:Impacts on Women and Child Workers

Organization IIED
Year 2003

Globalisation in many rural parts of the developing world is leading to an increase in contract farming arrangements. Under these arrangements, landowners or tenants have contracts with agribusiness marketing and/or processing firms who specify prices, timing, quality and quantity/acreage of the produce to be delivered. Workers employed by contract producers tend to experience poor terms and conditions, especially women workers, and there is an increasing incidence of child labour. This paper draws on case studies of hybrid cottonseed production in Andhra Pradesh and vegetable farming in Punjab to examine the labour conditions in contract farming in India. It argues that agriculture is becoming increasingly ‘feminised’ as men move out of the sector more quickly than women, and as women become the preferred labour type for many employers. While these new labour arrangements have led to marginal increases in real income for some women workers, they have also changed relationships between workers and employers, workers and work, and led to differentiation within labour. Women’s wages are generally lower than men’s, working conditions poorer and their bargaining power more limited. Of greater concern is the issue of child labour; one of the major problems in contract farming throughout the developing world. India is one of the main users of child labour in the Asian region, with almost 80% of working children employed in the agricultural sector. The majority of these child workers are girls; preferred by employers for their docility, obedience and ‘nimble fingers’. The cottonseed case study reveals that children, mainly girls, who might be as young as six, work from 8.30 am to 6-7 pm. These children might be continuously employed for six to nine months a year. Yet their employers or contractors have no requirement to take care of them; if any health problems arise, the children are simply replaced with a new group. With no social security obligations, there is hardly any cost involved for the employers. Children miss out on their schooling to work in the fields, yet child labour under contracting is not subject to any legal or public disapproval. The author argues for the need to take a gender perspective to address the whole question of a changing agrarian production structure under contract farming, especially issues associated with transfer of skills, choice of technology, organisation of labour, working conditions and terms of work. He suggests that banning child labour is not the answer; instead conditions for these children need to be made more tolerable, and their education and skills need to be built so as to release them and their families from the vicious cycle of poverty and exploitation. He also calls for industry-regulated codes of conduct, along with legal provisions, to increase the voice and influence of contract labourers.